Notes to SEFA
Title: Basis of Accounting
Accounting Policies: Basis of Presentation, and Summary of Significant Accounting Policies
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includesthe federal award activity of DGN II, Inc. (the “Organization”) under programs of thefederal government for the year ended June 30, 2023. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations, Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the Organization, it is not intended to and doesnot present the financial position, changes in net deficit, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies
Accounting Policies: Basis of Presentation, and Summary of Significant Accounting Policies
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Organization has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance.